Market News

Bitcoin and MicroStrategy: A Corporate Success Story with $28 Billion in Profit

MicroStrategy, now simply known as Strategy, has reported an astounding profit of $28.22 billion from its Bitcoin investments.

With a total holding of over 601,000 Bitcoin, the company has achieved a remarkable 65.82% return on its current $71.11 billion portfolio.

Their strategy primarily relies on large-scale dollar-cost averaging (DCA), which has proven effective in navigating price volatility.

This disciplined investing approach has resulted in a portfolio that withstands typical market corrections and reduces overall volatility.

The average cost basis of their Bitcoin investments stands at $71,290, while the current market price is around $118,200, creating a significant buffer against drawdowns.

In a bold move, Strategy made substantial purchases in May, June, and early July, capitalizing on the market's psychological shift past $100,000.

Unlike many speculative investors, the company's focus remains on accumulation rather than short-term profit-taking.

This approach not only strengthens their corporate treasury strategy but also illustrates the effectiveness of dollar-cost averaging compared to typical trading methods.

With Bitcoin trading around $118,000-$120,000 and positive market sentiment prevailing, the firm’s investment model is gaining more institutional traction.

As ETF inflows reach record levels, MicroStrategy's Bitcoin portfolio stands as a testament to the potential transformation in corporate investment strategies.